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DAVID BYWATER and GAVIN ORDE summarise the important aspects of the loan relationship rules for family companies.
THE TOPIC OF loan relationships is a hazy area to many people; the purpose of this article is to provide a straightforward overview of the subject and in particular the common issues which arise when advising family-owned companies. This article is therefore deliberately silent on a number of the more complex matters that tend to be relevant only to larger companies, such as the rules introduced in March 2005 affecting private equity investments.
DAVID BYWATER and GAVIN ORDE summarise the important aspects of the loan relationship rules for family companies.
THE TOPIC OF loan relationships is a hazy area to many people; the purpose of this article is to provide a straightforward overview of the subject and in particular the common issues which arise when advising family-owned companies. This article is therefore deliberately silent on a number of the more complex matters that tend to be relevant only to larger companies such as the rules introduced in March 2005 affecting private equity investments.
The majority of the provisions are contained in Finance Act 1996 and all references are to this Act unless stated otherwise. For completeness it is worth noting that there have been a number of amendments to the loan relationship legislation since it was initially enacted. This article focuses on the current provisions unless specifically stated.
